Saturday , October 1 2022

Genting trial against Disney, Fox over Malaysia theme park hits the casino operator's shares


KUALA LUMPUR: Shares in Malaysia's casino operator Genting dropped almost 19 percent on Tuesday (November 27) after the court brought Walt Disney Co. and 21st Century Fox to claim to abandon a project to build an amusement park in the country.

The US $ 1 billion trial filed at the US District Court in Los Angeles argued that Disney and Fox failed to honor a 2013 license to license intellectual property rights, including from Fox animated films such as Ice Age and Apes Planet ", for the theme park outside of Kuala Lumpur.

The package claims that Fox tried to terminate the agreement and that the Disney bosses were also keen to abandon the project because the park would be confined to a casino and would harm the company's "family-friendly" image.

In a statement to the AFP, a Disney spokeswoman dismissed the claims made against the company as "without merit".

Fox representatives did not respond immediately to a request for comments.

Genting Malaysia Berhad (GENM) said in a message to the local exchange that it was damaging more than $ 1 billion.

It promised to "fulfill its rights" under the agreement and "claim the cost of its investments and consequential injuries and punishment damages."

"Disputes are not expected to affect GENM's current business," said the company.

However, investors still sold Genting shares, which fell by as much as 18.6 percent before recovering anything. They were down 14.72 percent in the middle of the afternoon.

Broker CGS CIMB Securities described news about the disputes as a "big negative surprise" for the theme park, whose opening has already been delayed by more than a year.

"Potential legal complications" may also affect the park's new proposed opening date, scheduled for the first half of 2019, allow it.

"The plan was that Fox World would become the new center of Resorts World Genting, GENM's integrated resort in Genting Highlands," according to the mood.

The package claims that Fox had used repeated delays in the project as a reason to cancel the contract and had recently issued a notice of termination requiring the developer to open the park within 30 days, an impossible deadline.

"This is a case of the seller's regret, first by Fox, and then by Disney, after it later began the process of acquiring Fox in a store that is now expected to close in the first half of 2019," the judgment said.

It adds that Genting had the right to repurchase more than $ 750 million that it had already invested in the park, along with consequential damages and penalties in excess of $ 1 billion.

Built on more than 10 acres of Genting Highlands, an idyllic mountain escape on an hour's drive outside of Kuala Lumpur, the park had been set to have more than 25 rides and attractions based on such blockbusters as Ice Age, Life of Pi, Alien "and" Night at the Museum. "

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